Legislation that sailed through the state House last week would put the beleaguered Pittsburgh Water and Sewer Authority under the oversight of the Pennsylvania Public Utility Commission. The additional scrutiny is sorely needed, and the unusual degree of bipartisan backing for the legislation would seem to underscore the genuine concern behind it.
For years, PWSA has been a blight on Pittsburgh, a symbol of backward government starkly at odds with the image the city tries to portray. Its customers have contended with poor service, incorrect billing and neighborhood flooding. They have seen the agency used as a dumping ground for political hacks and accumulate about $750 million in debt while failing to keep pace with infrastructure needs. They were guinea pigs for a line warranty program that the agency tried to force down their throats, gaining a reprieve only when an Allegheny County judge ruled the shenanigan illegal.
The issue that brought PWSA’s troubles to a boil was news about elevated levels of lead in the water and the question of how to deal with it. New blood joined the board of directors, and the board and city agreed to bring in a consultant to study the agency’s future. These developments well may help to put the PWSA on course.
But PUC oversight is another responsible step, one that could afford outside expertise and guidance not unlike what the state-appointed financial overseers have provided to Pittsburgh for more than a decade under Act 47. Although far from perfect, oversight has helped the city to regain its financial footing. It hasn’t hurt the city or forced officials to privatize assets. The only serious attempt at privatization — former Mayor Luke Ravenstahl’s proposed long-term lease of parking garages and meters for a pension bailout — was defeated by city council in 2010.
The last point is important because some are balking at PUC oversight out of fear that it would put the agency on the road to privatization. House Speaker Mike Turzai, R-Marshall, who co-sponsored the PUC oversight legislation with Rep. Harry Readshaw, D-Carrick, has expressed interest in privatization in the past but says it’s a “non-issue” now.
Democrats surely would kick up a fuss if privatization were to come up down the road. Mayor Bill Peduto has no problem with PUC oversight, but he’d fight tooth and nail to prevent a sale of city assets. The bottom line is that there’s no reason to deny PWSA help now because of concern about a privatization attempt that might never come and would face substantial resistance if it ever did.
There will be other issues to watch, not least is whether oversight will lead to rate increases the PWSA board would be unlikely to make itself. On balance, we believe that oversight will help put the PWSA on track. The Senate should pick up the Turzai-Readshaw bill and pass it as expeditiously as the House has done.
First Published: June 11, 2017, 4:00 a.m.
